Defense Acquisition Regulations DFARS Transformation Ron Poussard Deputy Director, DPAP Defense Acquisition Regulations ronald.poussard@osd.mil http://www.acq.osd.mil/dpap/dars/index.htm November 30, 2004

DFARS Transformation Overview AT&L Direction Process Changes (PGI) Technology (DTIS) Impact

AT&L Direction Objectives: Reduce regulation Improve processes Conduct a comprehensive review and transformation of the FAR and DFARS Reduce DFARS by 40% Include operational proceedings used to revise and implement the DFARS Objectives: Reduce regulation Improve processes Inject technology Supports AT&L Goal 1 – Acquisition Excellence with Integrity Goal 2 – Resources Rationalized

Why? Excessive/unnecessary regulation in some areas Reliance on the regs creates a checklist approach Minimizes thought and analysis Impedes creativity and innovation Our review determined that the rulemaking process is -- Resource intensive and paper-based ~300 people supported the FAR/DFARS creation Time consuming and non-responsive Idea to reality: 14 month average for FAR changes, 11 months for DFARS Burdensome Difficult to participate in the rule-making process Blurred distinction between true “regulation” (what to do) and “guidance” (how to do it)

… but DFARS Matters DoD, the Hill, Industry promote DFARS Consistency in business practices Force of law Transparency – public comment process Discipline and accuracy Vehicle of choice to implement -- Departmental policies such as UID, RFID, Contractors on the Battlefield, DCMA Business Rules, domestic preference rules, Enterprise Software Initiative Legislative initiatives such as SARA IG/GAO recommendations – Competition on Schedules AT&L is the credible source for 50 years of historical knowledge of the acquisition process DFARS has immediate world-wide impact upon publication

DFARS, the Regulation -- A New DFARS DFARS, the Regulation -- Requirements of law Mandatory DoD-wide policy Delegations of FAR authorities Deviations from FAR Policies/procedures with significant effect outside DoD internal operations And… Links to Procedures, Guidance, and Information (PGI)

Procedures, Guidance and Information (“PGI”) Mandatory DoD-internal procedures* Optional DoD-internal procedures** Guidance** Helpful explanations, samples, guides, tips, etc. Information** Source material (policy memo) Statutes, Conference language Background/explanations Training material No significant impact on the public Not a codified regulation *Mandatory link in DFARS **Optional link in DFARS

Why PGI? VALUE Supports rapid change Fosters flexibility and innovation Distinguishes regulation vs procedure Shortens DAR Council and rule-making processes APPROACH Managed content (DARC direction and processes) Seamless access (Web based)

PGI Increment 2 Incorporate enabling technology to provide seamless access to the FAR, applicable statutes, & Training. PGI managed through the PGI Governance board. Rewrite of the PGI using plain language, what does it mean to the CO, industry, and others.

DFARS Information Transformation (DTIS) VISION Work flow & Mgmt Information Enhance Transparency Improve Responsiveness Collaboration Tools Document Management Exploit technology – An E-Biz initiative Build an integrated acquisition rule making system Bring the PCO to the rule-making table - virtually Create a forum for idea generation, publishing, deliberations, feedback, data, research, retrieval World Wide Web Share Knowledge Reduce Manpower Publication Tools Federal Docket Management System Model for E-Rulemaking

Impact For the Contracting Officer For Industry For the Public Transparency, Access, Knowledge, Participation

Summary AT&L recognized the need for change Unnecessary DFARS rules are being removed Industry is concerned but supportive Process changes are systemic and enduring PGI is a foundation for new knowledge management tools for the contracting officer and industry DTIS will facilitate further change to promote a responsive and transparent rulemaking process